Berg C
To: Proximity Mobile networking team
From: Courtney Berg
Date: March 1, 2010
Subject: Verizon strategy report
Here is my Verizon strategy report. In the past decade, wireless devices have become one of the top necessities for Gen Y users. When Gen Y's have to decipher which mobile company to use, they have many choices. Verizon wireless far surpasses all competitors, and has been rated the #1 wireless device server for the many years (Wired, 2010). Although many Gen Y users have other various mobile servers, there is an increasing potential for many to choose Verizon based on their wireless services, reasonable prices, and their ever-expanding network.
Profile
Verizon Wireless was originally founded by Bell Atlantic Corporation in 1983. Verizon Communications Inc., based in New York City and incorporated in Delaware, was formed on June 30, 2000, with the merger of Bell Atlantic Corp. and GTE Corp (Verizon, 2010). In 2004, Ivan Seidenberg became the sole CEO of Verizon’s corporation (Wikipedia, 2010). The Verizon Headquarters is located in New York City, and has been there since Verizon was founded.
Verizon’s revenue comes from 2 sources:
1) Wireless - wireless voice, data services and other value-added services and equipment sales across the United States (Verizon, 2010)
- 1.4 million organic (non-acquisition-related) net customer additions , almost all retail; 1.2 million total net customer additions
- 72.1 million total customers; 70.0 million retail customers
2) Wireline - voice, Internet access, broadband video and data, next generation Internet protocol (IP) network services, network access, long distance and other services (Verizon, 2010)
- 303,000 new customers for FiOS Television and Broadband/ DSL
- 14.3 % increase in consumer ARPU (average revenue per user) in legacy telecom markets
- 8.4 % increase in revenues from strategic business services
According to the Verizon Website, Verizon covers more than 290 million people, equivalent to nearly the entire U.S population. Verizon currently has 140.3 million landlines in service (Wikipedia, 2010) and the company has over 250,000 employees. Business Week stated that Verizon's revenue for 2009 was $72.4 billion, increasing a drastic amount from 2004, when Verizon’s revenue was $71,283 million (Standard & Poors).
Competitive Landscape
With society's yearn for constantly upgrading to the newest technology, there is an increasing competitive landscape for Verizon Communications. Verizon's #1 competitor is AT&T, and this is because AT&T is the only wireless company that features the iPhone. Ever since the iPhone launched in June of 2007, Verizon and AT&T have been in constant battle regarding who has a better 3G network, who has better mobile devices, and who has less dropped calls. Although there are other companies in the mobile network competitive landscape such as T-Mobile, Sprint, and others; Verizon far surpasses these companies and is the #1 mobile company to choose amongst the others.
Verizon's Strategy
Although Verizon cannot compete with AT&T's iPhone, they have featured many innovative mobile devices that have lured a plethora of customers to join the Verizon force. Verizon sells many Blackberry RIM devices, including the Storm which is only sold at Verizon Wireless. Verizon also now sells one of the most technological devices, the Droid by Motorola, which has recently become comparable with the iPhone.
There are many aspects that makes Verizon stand out amongst all other mobile networks:
1) Customer Service - As a Verizon customer for over 5 years, I personally would never use any other mobile company. Verizon is always willing to help their customers in every way possible, whether it is for insurance purposes, phone difficulties, or buying a new device. After witnessing the difficulties friends and families have has with customer service representatives in various other mobile companies, I would have to say that Verizon has an excellent customer service department, and that is one of the many aspects that Verizon is the #1 mobile company.
2) Mobile Service/Plans - Prior to entering the Verizon force, I was a Cingular/AT&T user; once I moved to Towson, all my calls were dropped, I had no service anywhere, and decided to switch to Verizon. That was the best decision I ever made - I have service everywhere, never have dropped calls, and the amount I pay for my Blackberry device is quite reasonable. Verizon has many plans including individual, family, prepaid, and mobile broadband; they also have different data plans for personal/business accounts which is very helpful for those who chose to have a Smartphone for personal reasons. Their plans are very reasonable, and provide many benefits to the users.
3) Wireline - The last strategy Verizon used to make their company #1 in the mobile environment is the Wireline company they have. Wireline provides Broadband/ FiOS Television for many people across the country, and is in competition with Comcast and Direct TV. Wireline also provides internet access for many customers, and this allows customers to have wireless internet access wherever they may need it.
Gen Y Implications
The biggest concern for Gen Y users is the best deal they will receive when purchasing a mobile plan. Another major concern of Gen Y users is keeping up with technology, and the major implication for Verizon is they are lacking the iPhone. Although both the Droid and Storm are somewhat comparable to the iPhone, AT&T in the only carrier that supports the iPhone. One leading benefit Verizon recently announced that will lure Gen Y users is Skype will now be available on certain Verizon Wireless devices. Kang stated in an article that "Verizon's 90 million customers will be able to download the free voice and videoconferencing software program onto nine smartphones offered by the carrier (The Washington Post, 2010). This is just one more reason that Gen Y users would prefer Verizon over any other carrier.
To: Proximity Mobile networking team
From: Courtney Berg
Date: March 1, 2010
Subject: Verizon strategy report
Here is my Verizon strategy report. In the past decade, wireless devices have become one of the top necessities for Gen Y users. When Gen Y's have to decipher which mobile company to use, they have many choices. Verizon wireless far surpasses all competitors, and has been rated the #1 wireless device server for the many years (Wired, 2010). Although many Gen Y users have other various mobile servers, there is an increasing potential for many to choose Verizon based on their wireless services, reasonable prices, and their ever-expanding network.
Profile
Verizon Wireless was originally founded by Bell Atlantic Corporation in 1983. Verizon Communications Inc., based in New York City and incorporated in Delaware, was formed on June 30, 2000, with the merger of Bell Atlantic Corp. and GTE Corp (Verizon, 2010). In 2004, Ivan Seidenberg became the sole CEO of Verizon’s corporation (Wikipedia, 2010). The Verizon Headquarters is located in New York City, and has been there since Verizon was founded.
Verizon’s revenue comes from 2 sources:
1) Wireless - wireless voice, data services and other value-added services and equipment sales across the United States (Verizon, 2010)
- 1.4 million organic (non-acquisition-related) net customer additions , almost all retail; 1.2 million total net customer additions
- 72.1 million total customers; 70.0 million retail customers
2) Wireline - voice, Internet access, broadband video and data, next generation Internet protocol (IP) network services, network access, long distance and other services (Verizon, 2010)
- 303,000 new customers for FiOS Television and Broadband/ DSL
- 14.3 % increase in consumer ARPU (average revenue per user) in legacy telecom markets
- 8.4 % increase in revenues from strategic business services
According to the Verizon Website, Verizon covers more than 290 million people, equivalent to nearly the entire U.S population. Verizon currently has 140.3 million landlines in service (Wikipedia, 2010) and the company has over 250,000 employees. Business Week stated that Verizon's revenue for 2009 was $72.4 billion, increasing a drastic amount from 2004, when Verizon’s revenue was $71,283 million (Standard & Poors).
Competitive Landscape
With society's yearn for constantly upgrading to the newest technology, there is an increasing competitive landscape for Verizon Communications. Verizon's #1 competitor is AT&T, and this is because AT&T is the only wireless company that features the iPhone. Ever since the iPhone launched in June of 2007, Verizon and AT&T have been in constant battle regarding who has a better 3G network, who has better mobile devices, and who has less dropped calls. Although there are other companies in the mobile network competitive landscape such as T-Mobile, Sprint, and others; Verizon far surpasses these companies and is the #1 mobile company to choose amongst the others.
Verizon's Strategy
Although Verizon cannot compete with AT&T's iPhone, they have featured many innovative mobile devices that have lured a plethora of customers to join the Verizon force. Verizon sells many Blackberry RIM devices, including the Storm which is only sold at Verizon Wireless. Verizon also now sells one of the most technological devices, the Droid by Motorola, which has recently become comparable with the iPhone.
There are many aspects that makes Verizon stand out amongst all other mobile networks:
1) Customer Service - As a Verizon customer for over 5 years, I personally would never use any other mobile company. Verizon is always willing to help their customers in every way possible, whether it is for insurance purposes, phone difficulties, or buying a new device. After witnessing the difficulties friends and families have has with customer service representatives in various other mobile companies, I would have to say that Verizon has an excellent customer service department, and that is one of the many aspects that Verizon is the #1 mobile company.
2) Mobile Service/Plans - Prior to entering the Verizon force, I was a Cingular/AT&T user; once I moved to Towson, all my calls were dropped, I had no service anywhere, and decided to switch to Verizon. That was the best decision I ever made - I have service everywhere, never have dropped calls, and the amount I pay for my Blackberry device is quite reasonable. Verizon has many plans including individual, family, prepaid, and mobile broadband; they also have different data plans for personal/business accounts which is very helpful for those who chose to have a Smartphone for personal reasons. Their plans are very reasonable, and provide many benefits to the users.
3) Wireline - The last strategy Verizon used to make their company #1 in the mobile environment is the Wireline company they have. Wireline provides Broadband/ FiOS Television for many people across the country, and is in competition with Comcast and Direct TV. Wireline also provides internet access for many customers, and this allows customers to have wireless internet access wherever they may need it.
Gen Y Implications
The biggest concern for Gen Y users is the best deal they will receive when purchasing a mobile plan. Another major concern of Gen Y users is keeping up with technology, and the major implication for Verizon is they are lacking the iPhone. Although both the Droid and Storm are somewhat comparable to the iPhone, AT&T in the only carrier that supports the iPhone. One leading benefit Verizon recently announced that will lure Gen Y users is Skype will now be available on certain Verizon Wireless devices. Kang stated in an article that "Verizon's 90 million customers will be able to download the free voice and videoconferencing software program onto nine smartphones offered by the carrier (The Washington Post, 2010). This is just one more reason that Gen Y users would prefer Verizon over any other carrier.
References
BlackBerry. (2010) Storm 2. Retrieved February 23, 2010, from http://na.blackberry.com/eng/devices/blackberrystorm
Chen, B.X. (2009). Verizon leads, at&t runs last in Wired.com's 3G Speed Test. Retrieved February 23, 2010, from http://www.wired.com/gadgetlab/2009/07/3g-speed-test/
Kang, C. (2010). Verizon wireless to welcome rival Skype onto its smartphones. The Washington Post. Retrieved February 23, 2010, from http://www.washingtonpost.com/wp-dyn/content/article/2010/02/16/AR2010021605260.html
Seidenberg, I. (2010). Wikipedia. Retrieved February 23, 2010, from http://en.wikipedia.org/wiki/Ivan_Seidenberg
Verizon Communications. (2010).Wikipedia. Retrieved February 23, 2010, from http://en.wikipedia.org/wiki/Verizon_Communications
Verizon Wireless. (2010) Droid. Retrieved February 23, 2010, from http://phones.verizonwireless.com/motorola/droid/